The 2013 Real Estate Instant Appreciation On Home Sale Prices Is a False Indicator – I Shall Explain
Starting January 1, 2013 there is a 3.5% tax on any real estate sold. Why you ask? Simple, ObamaCare, had an interesting clause in it, oh you didn’t hear about that. Most people haven’t but I assure you, you will soon enough. Why has the media been so quiet on this topic? That is actually a fair question, although ObamaCare or rather the Affordable Healthcare Act was thousands of pages, and no one read it before they passed it – perhaps you’ll recall when Nancy Pelosi stated “you’ll just have to vote for it, to see what’s in it,” so let’s talk about this.So what happens when the real estate tax goes into effect? Well, since the seller has to pay immediately you will see a jump of about 3.5% on all real estate being sold, including all the current listings. Many homes have already seen the 3.5% jump because it is almost impossible for anything to close that quickly now. Usually, when there is a jump in real estate, normally this is a good indicator that the housing market is recovering, which is a good thing because a recovering housing market is a sure sign of economic growth, not to mention it provides millions of jobs for the construction industry and all the related sub sectors and industries.But if the 3.5% increase is really just a tax which will go to the government for a totally nonrelated purpose such as healthcare, it is really acting as artificial inflation. Therefore, the increase in home appreciation has absolutely nothing to do with the economy, economic recovery, or the uptick bubble we are seeing in the housing industry currently. In essence, it is a completely false indicator. Still, I have no doubt that the Obama Administration will use this news to their credit in their mass media propaganda machine.What is really going to happen is many people who wish to buy a home who were very close, will now not be able to afford one. It also means that all the up and extras for energy efficiency which have increased the prices, will now be compounded with this other problem of the additional 3.5%. This is very unfortunate when there are so many new homebuyers who are having trouble getting a loan due to the Frank Dobbs Bill, and the fact that the FHA is $19 billion in the hole, it will be $93 billion in the hole within the next 18 months. Things aren’t so good.No one should assume that this uptick in home prices is a positive or even an honorable thing. It’s not. Indeed I hope you will please consider all this and think on it.